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Markets in March: Only fear and no greed

The Morning Brief

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What Is the Difference Between Type One and Type Two Errors?

A type one error means you're not giving what the market, the budget forecasted. A type two error is when central banks cut interest rates prematurely and then realized that inflation surged again. The sacrifice ratio in the long term is less if you do a little bit more and cut rates due to little inflation fester,. Then you really have to crush activity to bring inflation down.

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